Jeremy Joseph Drake, HCR Wealth Advisors, Los Angeles, CA
Are you concerned about investments with Jeremy J. Drake in Los Angeles, CA? If so, the securities attorneys at The White Law Group may be able to help you.
Drake, an investment adviser representative of HCR Wealth Advisors in Los Angeles, CA, reportedly pleaded guilty last year to a federal wire fraud charge and was sentenced on March 22, 2019 to two and a half years in federal prison after allegedly defrauding his clients out of $1.2 million, according to an article in MyLANews.com
From November 2012 until July 2016, Drake purportedly deceived two clients, a married couple holding joint accounts, about the annual management fees they were paying HCR. Drake allegedly told the clients, a high-profile professional athlete and his spouse, that they were being charged a special, VIP rate of between 0.15% and 0.20% of their assets under management, when, in fact, they were being charged and paying 1.0%.
During the course of Drake’s alleged deception, the clients paid approximately $1.5 million in management fees – over $1.2 million more than Drake represented to the Clients that they were paying – and Drake reportedly received approximately $900,000 of those fees as incentive-based compensation, according to the complaint.
Further, Drake allegedly perpetrated this deception by repeatedly lying to the clients and their representatives in person, in text messages, and over the telephone. He also reportedly sent the clients and their representatives “false and misleading emails, deceptive management fee reports, and a number of fabricated documents to corroborate his lies,” according to the SEC’s complaint.
According to his SEC adviser report, Drake was reportedly registered with HCR Wealth Advisors as an investment adviser from March 2009 until he was allegedly discharged in July 2016.
Recovery of Investment Losses
The White Law Group is investigation potential securities fraud claims involving the liability that Drake’s employer may have for failure to supervise his alleged activities.
As fiduciaries, investment advisers are required to act in the best interest of their clients and not place their own interests ahead of their clients.
When investment advisers violate securities laws, such as making false and misleading statements, or violating their fiduciary duty, the investment adviser firm they are working with may be liable for investment losses.
Investment adviser firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
If you have suffered losses investing with Jeremy J. Drake, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.